ACC Q4 Results: A Mixed Bag for Investors

ACC, one of India’s leading cement manufacturers, has reported a 68.27% year-on-year decline in its consolidated net profit for the March quarter of FY26. The company’s net profit stood at ₹238.25 crore, down from ₹751 crore in the same quarter last year.

Rising Costs Weigh on Margins

The main culprit behind the profit decline was the significant increase in costs. ACC’s total expenses rose by 22.71% year-on-year to ₹6,826.24 crore, driven by a 21.53% rise in the cost of materials consumed and changes in inventories of finished goods and work-in-progress. The company’s operating Ebitda (earnings before interest, taxes, depreciation, and amortisation) for Q4 FY26 stood at ₹627 crore, down 24.45% year-on-year.

The Ebitda margin at 8.8% was significantly lower than 13.6% in Q4 FY25. This decline in margins can be attributed to the increase in fuel, packaging, and currency costs, which had a negative impact on the company’s profitability.

Record Volumes and Steady Revenue Growth

Despite the decline in profitability, ACC reported a 16.87% year-on-year increase in revenue to ₹7,146.18 crore, driven by a higher premium product mix. The share of premium cement (as a percentage of trade sales) grew from 41% in Q4 FY25 to 45% in Q4 FY26.

The company also recorded its highest-ever quarterly sales volume of 11.9 million tonnes, up 7.2% year-on-year. This volume growth was driven by a higher share of trade and premium cement, continued momentum in ready-mix concrete, and improved utilisation of the existing asset base.

Management Commentary

Vinod Bahety, whole-time director and chief executive officer, ACC, said, “Amidst the global volatility and energy cost pressures, we have delivered sustained performance this quarter and during this fiscal, supported by strong brand penetration and disciplined execution across our operations.”

Bahety also highlighted the company’s efforts to improve utilisation across the existing asset base and advance alignment under the proposed ‘One Cement Platform’, focused on operational integration, capital efficiency, and long-term value creation.

Outlook and Valuations

Looking ahead, ACC expects the cost pressures to continue in the first half of FY27. The company’s shares are currently trading at ₹1,422.65 per equity share. Investors can visit our website to know more about cement sector news and stay updated on the latest developments in the Indian stock market.

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